4. Beeman Company exchanged machinery with an appraised value of $4,680,000, cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $4,520,000, cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 in the exchange. Assume depreciation has already been updated. Instructions (a) Prepare the entries on both companies' books assuming that the exchange had commercial substance. (Round all computations to the nearest dollar.) Beeman: Lacey: (b) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. (Round all computations to the nearest dollar.) Beeman: Lacey:

4. Beeman Company exchanged machinery with an appraised value of $4,680,000, cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $4,520,000, cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 in the exchange. Assume depreciation has already been updated. Instructions (a) Prepare the entries on both companies' books assuming that the exchange had commercial substance. (Round all computations to the nearest dollar.) Beeman: Lacey: (b) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. (Round all computations to the nearest dollar.) Beeman: Lacey:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Beeman Company exchanged machinery with an appraised value of $3,538,500, a recorded cost of $5,435,000 and accumulated depreciation of $2,717,500 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $3,358,500, a recorded cost of $6,430,000, and accumulated depreciation of $3,536,500. Lacey also gave Beeman $180,000 in the exchange. Assume depreciation has already been updated
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305. Subject : - Accounting
Crane Corp. exchanged Building 24, which has an appraised value of $1,805,000, a cost of $2,723,000, and accumulated depreciation of $1,245,000, for Building M which belongs to Bramble Ltd. Building M has an appraised value of $1,577,000, a cost of $3,177,000, and accumulated depreciation of $1,782,000. Bramble paid Crane the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. Prepare the entries on both companies' books, assuming the buildings are similar assets and there is no commercial substance for either company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
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Wildhorse Corp. exchanged Building 24, which has an appraised value of $1,719,000, a cost of $2,745,000, and accumulated depreciation of $1,314,000, for Building M which belongs to Blossom Ltd. Building M has an appraised value of $1,683,000, a cost of $3,165,000, and accumulated depreciation of $1,659,000. Blossom paid Wildhorse the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. Prepare the entries on both companies' books, assuming the buildings are similar assets and there is no commercial substance for either company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles Wildhorse Corp. Blossom Ltd. Debit Credit
Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000, and accumulated depreciation of $4,800,000 for Building M belonging to Fine Co. Building M has an appraised value of $6,016,000, a cost of $12,040,000, and accumulated depreciation of $6,336,000. The correct amount of cash was also paid. Assume depreciation has already been updated. Instructions Prepare the entries on both companies' books assuming the exchange had no commercial substance. Show a check of the amount recorded for Building M on Hodge's books. (Round to the nearest dollar.) PLEASE NO Hand writing, and don't upload a picture.
Blossom Corp. exchanged Building 24, which has an appraised value of $1,896,000, a cost of $2,722,000, and accumulated depreciation of $1,248,000, for Building M which belongs to Splish Ltd. Building M has an appraised value of $1,600,000, a cost of $3,182,000, and accumulated depreciation of $1,782,000. Splish paid Blossom the difference between the appraised values of the two buildings. Assume depreciation has been updated to the date of exchange. Prepare the entries on both companies' books, assuming the buildings are similar assets and there is no commercial substance for either company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles Blossom Corp. Buildings Accumulated Depreciation - Buildings Buildings Cash Debit 1243882 1248000 296000 Credit 2722000
Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the equipment. Assume that Arca exchanged the old equipment for new equipment, paying $4,000 cash. The fair market value of the new equipment is $5,000. Journalize Arca's exchange of equipment. Assume this exchange has commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss)
3. The company had the following transactions or events during the year: The company paid $100,000 to exchange an old equipment for a new equipment.The cost and accumulated depreciation of the old equipment were $500,000 and $260,000, respectively. The fair value of the old equipment was $300,000, while the fair value of the new equipment was $450,000. This exchange had commercial substance. The old machinery with the original cost of $5,000 and accumulated depreciation of $4,800 was exchanged for a new machinery.The company paid $6,000 for the new machinery. This exchange did not have commercial substance. The company purchased an equipment on September 1.The equipment will be dismantled, and the estimated site restoration costs of $50,000 will be incurred after 15 years. The current discount rate is 6%. The company recorded accrued interest on this asset retirement liability on December 31. (P/F,6%,15) =0.41727, i.e., the present value of $1 at the discount rate of 6% for 15…
Davis Company exchanged an old machine with a cost of $120,000, total accumulated depreciation of $70,000, and a fair market value of $45,000 for a similar new machine. In addition to the trade in of the old machine Davis Company also paid $20,000 cash. What amount of gain/loss should the company record for the old asset that was exchanged? O $15,000 gain O $5,000 gain O $5,000 loss O $25,000 loss O None of the above.
Hoyle Company owns a manufacturing plant with a fair value of $4,600,000, a recorded cost of $8,500,000, and accumulated depreciation of $3,650,000. Patterson Company owns a warehouse with a fair value of $4,400,000, a recorded cost of $6,900,000, and accumulated depreciation of $2,800,000. Hoyle and Patterson exchange assets, with Hoyle also receiving cash of $200,000 from Patterson. The exchange is considered to have commercial substance. Required: Record the exchange on the books of: Hoyle Patterson